Remote work has drastically changed the way we hire new employees. Employees are no longer tethered to a specific physical location, offering them the opportunity to work from anywhere in the world. The flexibility and convenience of remote work offers benefits to employers too, as they have a wider pool of candidates to choose from when hiring out of state employees in New York.
When your employees are moving to a new state, or you’re making brand-new hires in New York, complex multistate employment questions can arise. Because each state has different employment standards and laws, employers must ensure they are in compliance with each new state. Failure to comply could result in hefty fines and penalties.
Rather than researching each new state’s employment laws and standards, SixFifty has solutions. Our multistate employment tools take the time, hassle and cost out of hiring in a new state. Here’s an overview of what challenges can arise when hiring in New York—and how we can simplify the process.
Scenario 1: Employee works from home in another state
Before remote work was possible, a move out of state usually meant an employee had to seek a new job. Now employers can retain their employees when they move to a new state—but they should also be aware that the new state’s rules will govern that employee. That is, even if a company is headquartered in South Carolina, New York’s employment laws affect any employees living and working in the state.
Scenario 2: Hiring out-of-state employees in New York
Alternatively, a company may wish to hire an employee already living in New York. This is an advantage for most businesses—they get to hire the best person for the job, regardless of employment. Again, however, New York’s employment laws apply to anyone working there, even though the business is headquartered in another state. This means that employers must make sure their policies and wages comply with New York standards.
Multistate Employer Registration Factors to Consider
Many issues can arise when employees are hired from or move to New York. It’s the employer’s responsibility to comply with multistate regulations, or they could incur fines and penalties with the Department of Labor. Unfortunately, employment law is different in all 50 states.
To simplify the multistate hiring process, SixFifty has identified five key areas of focus. Our multistate tools allow companies to quickly onboard new hires, and retain their existing employees. Here’s the process for hiring a New York employee.
1. New York Employment Registration
First, you’ll need to establish an economic nexus in the state. Unlike many other states, New York doesn’t require businesses to obtain a registered agent. Instead, the Secretary of State is designated as the agent. You’ll also report your new hire, register for insurance and obtain workers’ compensation coverage.
- Obtain a registered agent
- Register to do business in New York
- Report new hire to the New York State Tax Department
- Register for unemployment insurance
- Report unemployment insurance account to payroll provider
- Obtain workers’ compensation coverage or update the policy
2. New York Tax Registration
Next, you’ll fulfill your tax obligations by registering for an income tax withholding account, filling and filing the income tax forms for your employee, and register with a sales tax license with the state. Even though your company is out of state, it still has tax obligations to New York.
- Register for income tax withholding account
- Obtain the completed state income tax withholding form from the employee
- Register for a sales tax license or permit
3. New York Required Employment Policies (April 2023)
New York has 15 state-specific employment policies, which must be included in your handbook. These policies include separate sick leave policies for New York City and Westchester County employees, so be aware of location-specific exceptions. Employers should review their handbook policies to ensure compliance.
- Crime Victim Leave
- Domestic Violence Leave (including separate policy for Westchester County)
- FMLA
- Jury Duty Leave (10 Employees)
- Meal and Rest Breaks
- Military Service Leave
- Organ and Bone Marrow Donor Leave (20 Employees)
- Paid Family Leave
- Paid Time Off
- Sexual Harassment Policy
- Sick Leave (including separate policies for New York City (5 Employees) and Westchester County (5 Employees)
- Volunteer Emergency Responders Leave
- Voting Leave
- Whistleblower
- Retirement Savings Plan (10 or more employees)
4. New York Employment Implications
The next step is to review New York’s employment implications and ensure that your company meets or exceeds each standard. For example, New York’s minimum wage is $13.20, but employees in New York City, Long Island and Westchester have a $15 per hour wage. Payroll, non-compete and insurance coverage should also be reviewed.
- Ensure non-compete provisions comply with New York law
- Confirm the employee is paid at least the minimum wage
- Review the applicable overtime laws
- Confirm the payroll practices meet the payment frequency standards in New York
- Consider whether insurance extends coverage to employees in New York
- Consider COVID-19 laws that affect the employee
5. New York Signage
Finally, New York requires employers to post or distribute 14 different types of signage, ranging from blood donation leave to equal pay laws. The state hasn’t declared how to post signage for exclusively remote workers. Generally, however, posting the notices on company intranet or another easily accessible folder satisfies the requirement.
- Post or distribute required signage
Simplify Multistate Compliance with SixFifty
The process of maintaining compliance can be complex and extremely nuanced for companies unfamiliar with New York employment laws and standards. It’s why SixFifty has compiled an extremely useful tool for businesses hiring out-of-state employees in New York. To simplify the process of hiring out-of-state employees in New York or supporting remote employees on-the-move, check out our 50 State Hiring Kit.